The Story Behind 1Plus1 Loans

Launched in 2013, 1Plus1 or 1+1 loans has grown to become one of the most established and well-known guarantor loan lenders in the UK.

The story behind their name reflects the way that you need an extra person to be your guarantor to be eligible for a loan – hence, they are your “Plus1.” This is highlighted in their TV advert below, which you might have seen!

By offering loans with a guarantor, it gives those borrowers with bad or zero credit the opportunity to get the funds they need, with the option to borrow between £500 to £10,000 and repay over 12 or 60 months (1 to 5 years).

The guarantor agrees to pay the loan in the event that the main borrower cannot. So for the lender, they feel confident that they will get their loan repayments back, especially if the guarantor has a good credit score and has a strong history of making other loan payments in the past.

So obviously the main borrower and the guarantor should have quite a close relationship and there should be an element of trust. The best people to guarantee are typically close family and friends, as mentioned in our guide on who could be my guarantor.

1Plus1 Loans are dedicated to making the loan application as simple as possible and they pride themselves on good customer service. Their offices are open Monday to Friday from 9am to 6pm and their customer support team is available to answer questions by email 24 hours a day, 7 days a week.

How To Apply With 1Plus1 Loans

To apply with 1+1, all you need to do is click on apply now and you will be taken directly to their website where you can apply. As a direct lender, everything you enter on their website and all the correspondence will remain within their team – there are no other middlemen. Plus, there are no upfront costs for applying and we also do not charge a fee for applying but we may receive a commission for introducing you to their website.

What Is The Criteria For Applying?

In order to apply and be able to make the next stage, 1Plus1 have their own criteria, like all other lenders in the industry.

This includes applicants being aged 18-75, UK residents, have working debit account (for payment and repayment), working mobile phone and email account, must have a guarantor and a good credit rating.

One of the crucial things is that borrowers must be homeowners as this suggests that the customer has a good credit history and is also less likely to leave their loan if they have a property in the UK.

You cannot use your partner or spouse as your guarantor if you live in or co-own the same property.

You cannot apply if you are bankrupt or currently experiencing Individual Voluntary Arrangement or other financial difficulties. You should not use a loan from 1+1 to repay other guarantor loans as this may cause a spiral of debt.

How Does The Application Work?

The 1Plus1 loan website is completely responsive so it is easy to fill in your details on desktop, mobile and tablet. You can also apply over the phone if you wish.

You will be required to fill in a few basic details including:

Reason for the loan, loan amount and loan term

name and home address

employment details

contact details

As part of the application, you will also be required to enter the details of your guarantor. You are allowed to include 3 different guarantors however, they have a “3 strikes and your out” rule so if none of your 3 contacts are approved, you will not be able to proceed.

The borrower and the guarantor will both undergo credit checks carried out by Equifax to assess their current financial situation and level of outstanding debt.

Additional affordability checks will be put in place to check that the main borrower can afford to pay the amount they have asked for. So it is likely that 1Plus1 will request for a payslip or bank statement to confirm their monthly salary and employment status.

If the application is successful, both parties will be required to electronically sign the loan agreement highlighting the terms of their loan and then the funds can be sent within 24 hours.

How Does Repayment Work?

Collections are made in equal monthly instalments, with loans lasting from 12 months to 60 months (1 to 5 years). Payments are made on the customer’s pay date from work because this is the most likely time that they will have funds in their account, ready for collection.

The lender will try make a collection from the borrower’s debit account via Continuous Payment Authority. This enables the company to go into the customer’s account and collect their funds in a smooth transaction and avoid the individual from having to make a manual repayment or pay over the phone. Lenders are usually limited to trying the customer’s account twice a day and they will be contacted via phone and email if the payment is not successful.

At 1 Plus 1 loans, you can repay your learn early if you need to and save money when doing so. If you feel that your financial situation has improved and you can pay sooner than 12 months, simply log into my account or call us the company and you will be able to clear your account. The best thing is that you will only be charged the amount of daily interest that you have accrued up to that point so it will always be cheaper to repay early if you can.